Secaucus, NJ asked in Bankruptcy for Missouri

Q: If i owe a somebody filing bankruptcy money, and there is no written contract nor payment arrangement, what can happen

Amount owed is "allegedly" about $40,000. No written contract and no agreement on how to pay the funds back was ever discussed.

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3 Lawyer Answers
Clark Dray
Clark Dray
Answered
  • Bankruptcy Lawyer
  • Broomfield, CO

A: The bankruptcy trustee steps into the shoes of the Debtor. This means the trustee can sue you for the money. Whether or not he or she does so will depend on whether the Debtor discloses the claim, which he or she must, and whether the trustee thinks he or she could prevail in a suit against you.

Timothy Denison
Timothy Denison
Answered
  • Bankruptcy Lawyer
  • Louisville, KY

A: Depends on whether you acknowledge the debt and whether the debtor disclosed the debt in his petition. The trustee stands in the debtors shoes and can bring a action for the money.

David Reese Fondren
David Reese Fondren
Answered
  • Bankruptcy Lawyer
  • Clayton, MO
  • Licensed in Missouri

A: The bankruptcy Trustee steps into the shoes of the Debtor. In order to collect a debt owed the Debtor, the Trustee must have the same quality of proof and evidence. There must be evidence that a contract to re-pay money was voluntarily and intentionally created by both parties. Normally, the "Statute of Frauds" requires a written contract for amounts you are talking about. But equity sometimes allows judges to use the other evidence. In this case, any communication by you admitting you owe the funds, They could even use your question here as an admission Secaucus. An eye witness to you saying you owe the funds, or other actions by you like making payments. These are examples, there could be other sources as well. There are many other issues that cannot be covered either.

The Debtor should have listed the debt on Schedule B, because it is required by law. The Debtor may have valued it at zero believing it is uncollectible. But, the Trustee must make an independent determination of that issue. The Trustee could even have a 2004 examination of you and ask you under oath and penalty of perjury if you owe the money.

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